On a normal weeknight, Netflix accounts for almost a third of all Internet traffic entering North American homes. That’s more than YouTube, Hulu, Amazon.com, HBO Go, iTunes, and BitTorrent combined.

[...] Netflix has more than 36 million subscribers. They watch about 4 billion hours of programs every quarter on more than 1,000 different devices.

Reed Hastings deserves far more praise than he currently receives. As is evidenced by the afore-cited quotation, he has built a technological behemoth. An unparalleled feat by any of Netflix's most fierce competitors.

I consider Reed Hastings — along with Jeff Bezos — to be amongst the most undervalued executives in the technology industry. Investors and members of the press so frequently come down upon both Hastings and Bezos, but few take a step back to witness just what both men are seeking to build.

2013 will continue to be a fascinating year for both men, but, in the media world, I think there are few more important people than Hastings. The long-term impact of Netflix has yet to be felt, but, as 'Arrested Development' comes ever closer to its arrival, I tend to think recognition of its potential will follow soon thereafter.

Over the coming decades and across the world, Internet TV will replace linear TV.

Apps will replace channels, remote controls will disappear, and screens will proliferate.

As Internet TV grows from millions to billions, Netflix, HBO, and ESPN are leading the way.

For those of you who wrote Mr. Hastings off in the summer of 2011, I suggest you read this and re-evaluate your perspectives.

At the helm of a startup that's reshaped the way we consider modern media consumption, Hastings has repeatedly shown a well-tempered philosophy with regard to the future of the landscape.

Of course there've been sizable problems once or twice, but, at the end of the day, he's a fallible man. And in this 11-page document, we bear witness to a very thoughtful gentleman opining about the future of his industry.

Of particular note is Hastings' clear alignment with — and belief in — Netflix's future of platform agnosticism as a key to its growth. He cites the increasing proliferation of intelligent television devices as a primary reason for such thinking — a notion that makes a very large amount of sense, contrary to the genuine lack of such forethought in the industry.

Hastings is also fundamentally aware that Netflix's position of dominance and growth can only be sustained for so long. He writes of the impending large-scale disruption of television and explains his plot for Netflix to help nurture, encourage, and support such growth — even by offering supportive olive branches to pre-existing and well-entrenched cable companies.

It's a candid, thoughtful, and well-considered look into the near future and is an immediate source of excitement for me as a fan of innovation and media. (And Netflix, obviously.)

Along with Jeff Bezos, I find Reed Hastings to be one of the most affable and impressive executives around. Moreover, I'm hopeful the combination of performance with outward messages of optimism such as this will help solidify confidence and excitement in both Netflix and Hastings.

Most of all, though, we've found the holy grail of the media industry: a likable, forward-thinking executive with a vested and well-stated interest in nurturing the disruption of his industry.

Long-term readers will know I'm extremely confident regarding Netflix and its growth opportunities. For newer readers, here's an (updated) summary as to why I feel quite so passionate:

Netflix has a huge head start — both in terms of mindshare and tangible products — in original programming and content partnerships. They have pre-emptive deals with the likes of Disney to become active for the company's ever-increasing media library and Reed Hastings has — despite one ridiculous summer of failure — proven to be a shrewd businessman.

The fundamental fact of the matter is that Netflix is simply not going anywhere and any attitudes to the contrary are utterly out-of-step with the realities of the marketplace.

Of course Amazon — including LoveFilm abroad — and HBO pose threats to Netflix's dominance. But, in a digital media landscape increasingly hinging on original programming, no outlets are performing to the advanced degree of Netflix in the digital space.

Perhaps you didn't enjoy House of Cards and maybe (bafflingly) you're not excited about Arrested Development, but you're unquestionably aware of both. Meanwhile, Amazon released pilots for its original shows this week and barely caused a ripple of coverage online. HBO meanwhile continues to draw the ire of fans who cannot legally watch Game of Thrones.

Netflix is a volatile stock, but that should not be misconstrued as evidence of a failing company. For as long as HBO continues to avoid a digital-only offering, Netflix will reign supreme. And, at this point, HBO appears to be the only viable competitor. As much as I have a deep-seated affinity for Amazon, the experiential quality of their streaming program pales in comparison to both Netflix and HBO.

Even if (when?) HBO chooses to provide a digital offering, I do not foresee a crippling effect on Netflix's growth. Instead, I think it'd catalyze a consumer-benefiting competition for producing the best streaming solution. And that's certainly not a bad thing for any of us.

On-demand digital programming is the future. And original programming will have to exist within that environment. Simply put, the only company truly succeeding and acting aggressively upon this reality is Netflix. And I cannot help but think it'll benefit them in the long-run.

Nevertheless, HBO will invariably be watching Netflix's performance with a keen eye today. If that were to force their hand, I'd be the last person to complain.

In the meantime, we can take a minute and give Kilar credit for building and maintaining an influential, important and valuable site many people pronounced dead as soon as it was born.

As Kilar himself notes, Hulu’s unofficial launch name was ClownCo, because any sensible person knew that there was no way Big Media companies could form a worthwhile joint venture, and zero chance they’d be able to create a decent video site. That’s the kind of thing that you left to the smart tech guys at places like Myspace, Veoh and Metacafe.

Surprise! Those guys are gone, and Kilar and his team ended up building a really great website, and then kept it up and running for 5 years, while generating real money by the end of his run. Meanwhile, the site’s value doubled, to $2 billion.

Sometime in 2008, after a particularly heavy weekend, I remember one of my housemates emerging from his darkened bedroom — eyes bloodshot and exhausted — with a confusing smile on his face.

"I just watched the first season of 'Arrested Development' non-stop for most of the day," he proudly remarked.

Noting that I was fairly unperturbed by his achievement, he added one simple — and, then, somewhat revolutionary — word to the end of his statement: "Legally."

As a student, Hulu was an unfathomable gift. Having watched as friends repeatedly received DMCA notices for pirating television seasons, Hulu suddenly appeared with the endorsement of the industry whose content it sought to share freely with the world.

Perhaps the service has fallen somewhat slack in light of the rise of Netflix, but, nevertheless, it remains one of the most memorable services I've ever had the pleasure of using.

And, as Kafka highlights, it was, indeed, a pleasure to use. Greeted by a fairly well-designed site and that smooth narratorial voice at the beginning of each episode, Hulu stood well apart from the pack and unquestionably paved the way for digital streaming into the lives of countless people in the United States. And, against the odds, Hulu still looks and behaves wonderfully well today.

Kilar was, without a doubt, given an extremely raw deal by Hulu's stakeholders. He was tasked with developing, launching, and sustaining a product that was otherwise destined for catastrophic failure. And, with this hand, Kilar did not resign himself to the obvious, but instead rose to the occasion and built an industry disrupting service.

Regardless of Hulu's issues — all of which are largely borne out of stakeholder issues — Kilar deserves plenty of praise for what he achieved with the service. Although I rarely use Hulu any more, I certainly feel indebted to Mr. Kilar and his team for all that they've achieved over the past six years.

More than that, I'm excited to see what such a talented and forward-thinking businessman might get up to next.

Paid, legal movie downloads in the U.S. are expected to reach 3.4 billion views this year, more than doubling from 1.4 billion last year. Physical video viewing will shrink to 2.4 billion views from 2.6 billion views last year. The trend is expected to continue in the years ahead, according to IHS.

[…] Online viewing is expected to generate $1.7 billion for 2012, compared to $11.1 billion created from viewing on physical formats. By 2016, online viewing will still only account for 17% of associated industry revenue, while physical videos will generate 75% and video-on-demand pay television will account for the remaining 8%; according to IHS.

Consumers will pay an average of 51 cents for every movie watched online in 2012, compared to $4.72 for a physical video.

Amid lingering uncertainty over Netflix’s long-term viability, all statistics and trends point to a thoroughly favorable outlook for the streaming giant.

Original content, renewed marketing efforts, an extensive library, and near-ubiquitious availability each betray a service that is undoubtedly set to guide our media consumption habits for the coming years. Despite Netflix’s relatively low stock price compared to this time last year, I cannot help but feel wholeheartedly optimistic for the company’s future.